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Essays on the Capital Structure Decisions : 기업특성과 자본구조 의사결정의 관계에 관한 연구

DC Field Value Language
dc.contributor.advisor황이석-
dc.contributor.author조형진-
dc.date.accessioned2017-07-13T07:26:51Z-
dc.date.available2017-07-13T07:26:51Z-
dc.date.issued2015-08-
dc.identifier.other000000053338-
dc.identifier.urihttps://hdl.handle.net/10371/119374-
dc.description학위논문 (박사)-- 서울대학교 대학원 : 경영학과 경영학전공, 2015. 8. 황이석.-
dc.description.abstractThis thesis consists of two essays on the capital structure decisions. Two essays revisit prior literature on the capital structure decisions by addressing their shortcomings. Although two essays investigate different determinants of capital structure decisions (i.e., financial reporting quality for 1st essay and competition type for 2nd essay), they contribute to the literature by showing that addressing
shortcomings in prior literature can yield different implications. First essay tests the effect of reporting quality on financing choices between debt and equity financing. Extant research suggests that firms with high quality financial reporting benefit from low costs of raising debt or equity. However, little is yet known about which benefit in debt or equity financing is greater and whether the ex ante differential in benefits turn to ex post differential in financing.
This paper tests how financial reporting quality influences the interdependence of cash holding, debt financing, and equity financing to fund the financing deficit (i.e., negative free cash flow). It finds that in order to fund one dollar for financing needs, firms in the highest decile of reporting quality use $0.27 of cash holding and issue $0.61 of debt and $0.12 of equity, whereas firms in the lowest decile use $0.29 of cash reserves and issue $0.44 of debt and $0.27 of equity. This indicates that firms with higher reporting quality rely more on debt financing than on equity financing. This paper further documents that the differential impact of reporting quality in debt financing and equity financing is more salient in firms with private long-term debts and in financially constrained firms, supporting the debt contracting value of accounting information.
Second essay highlights the difference between price and non-price competition and expands prior studies on the relations that product market competition intensity has with capital structure and payout policies. Specifically, non-price competition intensity is positively related with the use of equity financing relative to debt financing. Also, firms accumulate more cash reserves by reducing the distribution of free cash flows to outside investors as non-price competition intensifies. However, such relations are weaker for price competition industries. These findings suggest that the competition type can be an important explanatory factor on the relations between competition intensity and financial policies.
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dc.description.tableofcontentsTable of Contents
Essay 1: The Impact of Financial Reporting Quality on the Relative Use of Debt vs. Equity Financing
1. Introduction 2
2. Prior Literature and Hypothesis Development 11
2.1 Financial Reporting Quality and Financing Choices 11
2.2. Hypothesis Development 15
3. Research Design 18
3.1. The Financing Choices of Firms 18
3.2. Measurement of Financial Reporting Quality 23
4. The Sample 27
5. Test Results 28
5.1. The Association between Financial Reporting Quality and Financing Choices 28
5.2. Reporting Quality and the Choice of Debt Maturity 37
5.3. Reporting Quality and the Choice between Private and Public Debt 38
5.4. Financial Constraints Test 39
5.5. Financial Reporting Quality, Collateral Shocks, and Debt Capacity 41
5.6. Robust Tests 43
6. Conclusion 47
References 49
Appendix A: Variable Definition 54
Appendix B: Distribution of External Financing 56
Appendix C: The Likelihood of Having Long-Term Bond Rating 58



Essay 2: The Industry-Specific Relation between Competition Intensity and Financial Policies
1. Introduction 79
2. The Review of Prior Literature 85
2.1 Product Market Competition, Financing Choices, and Payout Policies 85
2.2. Price vs. Non-Price Competition 86
3. Research Design and Sample 88
3.1. Measurement of Competition Intensity and Type 88
3.2. The System of Equations Approach to Capture Financing Choices and Payout Decisions 91
3.3. The Sample Description 95
4. Competition Intensity, Competition Type, and Future Performance 96
5. Competition Intensity, Competition Type, and Financing Choices 98
6. Competition Intensity, Competition Type, and Payout Decisions 101
7. Additional Tests 107
7.1. The Firm-Level Identification of Competition Type 107
7.2. Do firms under tougher competition use larger cash reserves to fund investments? 109
8. Conclusion 112
References 114
Appendix A: Variable Definition 118
Appendix B: Capital Expenditure, Competition Intensity, Competition Type, and Financing Choices 120
국문초록 145
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dc.formatapplication/pdf-
dc.format.extent2677920 bytes-
dc.format.mediumapplication/pdf-
dc.language.isoen-
dc.publisher서울대학교 대학원-
dc.subjectcapital structure-
dc.subjectfinancial reporting quality-
dc.subjectproduct market competition-
dc.subject.ddc658-
dc.titleEssays on the Capital Structure Decisions-
dc.title.alternative기업특성과 자본구조 의사결정의 관계에 관한 연구-
dc.typeThesis-
dc.description.degreeDoctor-
dc.citation.pagesvi, 146-
dc.contributor.affiliation경영대학 경영학과-
dc.date.awarded2015-08-
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